Consumer confidence picks up in December, says Nationwide

Consumer confidence rose in December for the first time since August, although worries about jobs and the economic outlook still left it well below its long-term average, a survey said on Tuesday.
By The Newsroom
Published 18th Jan 2011, 08:05 BST

The Nationwide Consumer Confidence index climbed eight points to 53 last month from 45 in November, ending three months of falls and matching October's figure.

That is far short of the long-run average of 81 and December 2009's reading of 70 when the government was emerging from an 18-month recession following the financial crisis.

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Despite public spending cuts and tax rises intended to reduce a record peacetime budget deficit, the index suggested an improvement in mood across all categories.

The measure of people's expectations for the economy in six months rose to 73 from 61 in November, while the spending index jumped 10 points to 90.

Nationwide's Chief Economist Robert Gardner said the index appeared to show a "decrease in pessimism" rather than a sense among consumers that the economy will significantly improve in six months.

"While the up-tick is encouraging, household confidence remains subdued, reflecting ongoing uncertainty about the economic outlook," he said in a statement.

Related topics:Nationwide